Country properties experience price falls

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by Kay Murchie

Figures from estate agent Knight Frank have shown that prime country property prices fell 3.9% in the second quarter of 2008, this represents the fastest rate for over 10 years.

This market generally attracts city professionals and the credit crunch has meant that bankers and wealthy Londoners have had their bonuses slashed and have been unable to commit to this type of purchase.

Furthermore, job losses are rife in the financial district while others are uncertain about their job security.

According to Knight Frank, cottages were down 5.7% while farmhouses lost 4%. Manor houses experienced a marginal fall of 1.9% as they continued to attract affluent buyers from overseas.

The average cost of a farmhouse has now fallen £1.29 million, while the cost of a cottage is around £525,900.

Knight Frank also discovered that there has been a noticeable fall in the number of properties coming onto the market in the Midlands and south. The agent believes that this is because sellers are choosing to sit out the current uncertainty in the market.

Liam Bailey of Knight Frank said for the first time in 3 years, prices for all property types fell with cottages and farmhouses hit the worst due to these types of homes attracting bankers and young professionals.

However, according to Rupert Sweeting, Knight Frank’s head of country department, country properties priced over £4 million are still in demand. Furthermore, farm and land sales are thriving and show no sign of slowing.

Rural land prices continue to rise significantly, concluded Mr Sweeting.